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<br />COMMERCIAL LEASE <br /> <br />This Commercial Lease, executed June , 2002, by and between ROSEVILLE <br />PROPERTIES MANAGEMENT COMPANY, a Minnesota corporation, as agent for ROSEVILLE <br />PROPERTIES ("Landlord") and Synergy Motor Car Company a Minnesota Corporation ("Tenant"). <br /> <br />DEFINITIONS: <br /> <br />"Building" -- That certain Building on real property located in the City of Roseville, County of Ramsey, <br />State of Minnesota, containing approximately 6,000 square feet and commonly addressed as 1900 <br />Oakcrest Avenue (See Exhibit A). <br /> <br />"Demised Premises" - That certain portion of the Building addressed as Bay 9, consisting of <br />approximately 6,000 square feet as measured from the outside walls of the Demised Premises to the <br />center of the partition wall (see Exhibit B). The Demised Premises includes a non-exclusive easement for <br />access to Common Areas as defined below, and all licenses and easements appurtenant to the Demised <br />Premises. Unless otherwise stated, Tenant shall accept the Demised Premises in an "as is" condition, <br />except that Landlord agrees to perform tenant improvements based upon mutually agreed upon plans and <br />specifications. Landlord shall provide $35,000.00 for the cost of said tenant improvements. Tenant shall <br />be responsible for all costs exceeding $35,000.00. <br /> <br />"Common Areas" -- The term "Common Area" refers to all areas used non-exclusively by Tenant and <br />other Tenants in the Building, including, but not limited to, corridors, lavatories, driveways, truck docks, <br />parking lots and landscaped areas. Common Areas are available to Tenant and its employees, agents, <br />customers, and invitees for reasonable use in common with other lessees, their employees, agents, <br />customers and invitees, subject to reasonable rules and regulations set forth by Landlord. <br /> <br />In consideration for the Base Rent, Additional Rent and any additional compensation(s) outlined in <br />this Lease, Landlord leases to Tenant the Demised Premises under the following conditions: <br /> <br />1.0 TERM OF LEASE AND POSSESSION: <br /> <br />Landlord gives and Tenant takes possession of Demised Premises for the term of five (5) years <br />beginning July 1,2002, and ending June 30, 2008, unless terminated earlier as conditioned. <br /> <br />Unless otherwise stated, Landlord shall deliver possession of the Demised Premises to Tenant in the <br />condition required by this Lease on or before the Commencement Date, but delivery of possession prior <br />to or later than such Commencement Date shall not affect the expiration date of this Lease. The rentals <br />herein reserved shall commence on the date when possession of the Demised Premises is delivered by <br />Landlord to Tenant. Any occupancy by Tenant prior to the beginning commences all mutual terms and <br />obligations of this lease. Landlord shall have no responsibility or liability for loss or damage to fixtures, <br />facilities or equipment installed or left on the Demised Premises. If Demised Premises are not ready for <br />occupancy by Commencement Date and possession is later than Commencement Date, rent shall begin <br />on date of possession. <br /> <br />2.0 BASE RENT: <br /> <br />Landlord is due and Tenant shall pay Landlord, Base Rent as scheduled: <br /> <br />Months 1 through 12 <br />Months 13 through 24 <br />Months 25 through 36 <br /> <br />$2,800.00 per month <br />$2,885.00 per month <br />$2,970.00 per month <br />